She said Edmonton, like all communities, can fund the project using provincial infrastructure grant money through the multibillion-dollar Municipal Sustainability Initiative, known as MSI.

"Every community in this province can make the decision that it wants to in terms of their community priorities with MSI funding," said Redford.

"But in terms of other streams of funding it's not something that any community should be contemplating, particularly in these fiscal times."

On Thursday, Redford announced that falling prices for oilsands bitumen are expected to blow a $6-billion hole in the upcoming 2013-14 provincial budget.

Redford's comments came two days after the city and Oilers owner Daryl Katz agreed on a framework deal to build a $480-million downtown arena for the NHL franchise.

Once surrounding infrastructure is added in, the cost will be $601 million, paid for by the city, the Oilers, a ticket tax, with another $107 million hopefully coming from the province and $7 million from the federal government.

Alberta NDP Leader Brian Mason said while the gaming idea is kaput, the game is still on given that Katz, his family, and business associates donated $430,000 to Redford's Progressive Conservative Party in last spring's election.

"Given the fact that (Katz) donated $430,000 to them in the last campaign and saved their neck, that's one promise I expect (Redford) to actually keep," said Mason.